Land Transfer Tax Rebate

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Land Transfer Tax Rebate

Land Transfer Tax Rebate in Canada

First time buyers can avail land transfer tax rebate, which is applicable in few provinces and cities in Canada such as Ontario, British Columbia, Prince Edward Island and the city of Toronto. It may offset the land transfer payment if it is claimed at time of registration. There are different rules and regulations with regard to land transfer tax rebate in different provinces and cities of Canada.

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Land Transfer Tax Rebate in Ontario

When an individual purchases land or has an interest in land based in Canada, he is required to pay land transfer tax. First-time homebuyers in Ontario can claim for a rebate equal to the full amount of their land transfer tax, up to a maximum of $2,000 only

Who is eligible for land transfer tax rebate in Ontario?

In order to receive land transfer tax rebate in Ontario, a first time home buyer must qualify the following conditions:

The buyer must be atleast18 years of age and must live in the home within nine months of buying it.

The buyer must not have owned a home before

If the buyer has a spouse, they cannot have owned a home before.

As per Ontario land transfer tax rates, the rebate covers the full tax amount up to a maximum home purchase price of $227,500. Beyond the maximum exemption limit, the home buyer will have to pay the remainder of their land transfer tax. If a home buyer is buying home along with spouse and only one of them fulfils all the qualifying conditions to get rebate then even they can receive 50% of the rebate. In order to get tax rebate, one must get help from real estate lawyer to complete the process who will file your transfer tax rebate electronically.

Land Transfer Tax Rebate in Toronto

First-time homebuyers living in Toronto are eligible to receive rebate equal to the full amount of their municipal land transfer tax. The maximum provincial land rebate for first time buyers is $2000 and the maximum Toronto LTT rebate for first time buyers is $3,725.

Who is eligible for land transfer tax rebate in Toronto?

Here are the eligibility conditions to be fulfilled to receive Toronto Municipal Land Transfer Tax Rebate for First-Time home buyers:

The home buyer must be 18 years of age

He/she must live in the home within 9 months of buying it

He/she cannot have owned a home before

If the buyer has a spouse, they cannot have owned a home during the time they have been buyer’s spouse.

If the first time buyer is qualified for the rebate based on Toronto land transfer tax rates, the rebate will cover full tax amount up to a maximum home purchase price of $400,000.

If the purchase price of home is more than $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

If the buyer is eligible to get rebate, his/her real estate lawyer will claim the rebate electronically through Teraview while registering his transfer/deed. For more information, visit the Municipal Land Transfer Tax Rebate website.

First-time homebuyers in British Columbia

First-time homebuyers in British Columbia are eligible to receive rebate on land transfer tax equal to the full amount of their property transfer tax, up to a maximum of $7,500.

In order to qualify for British Columbia First Time Home Buyers’ Program, one must fulfil the following conditions:

The first time home buyer must be a Canadian citizen or permanent resident

Such person must have lived in B.C. for 12 consecutive months immediately before registering his/her property, or he/she must have filed two income tax returns in B.C. in the past six years,

Such person cannot have owned a home before

He/she must not have received a first-time homebuyers’ exemption or refund before.

Land Transfer tax Rebate in British Columbia

If an individual qualifies for land tax rebate based on the British Columbia property transfer tax rates allowed to first time buyers in British Columbia, the rebate will the full tax amount up to a maximum home purchase price of $475,000.

If the purchase price of home is between $475,001-$499,999, homebuyers will only qualify for a partial rebate. If the home is purchased for $500,000 or more, no rebate is available and the full tax amount will be due.

If one qualifies for the rebate, your real estate lawyer will help you complete the First Time Home Buyers’ Property Transfer Tax Return form where he/she registers the property transfer. For more information, visit the First Time Home Buyers’ Program website.

Land Transfer Tax Rebate in Prince Edward Island

First-time homebuyers in Prince Edward Island are eligible to get land transfer tax rebate equal to the full amount of their property transfer tax, up to a maximum of $2,000.

In order to qualify for land transfer tax rebate in Prince Edward Island, first tine home buyers should qualify the following conditions:

Such person must be 18 years of age,

He/she must be a Canadian citizen or permanent resident

He/she must have lived in Prince Edward Island for six consecutive months before registering for property or such person must have filed two income tax returns in PEI in the past six years

Such person cannot have owned a home before,

He/she must not have received a first-time home buyer’s exemption before.

Based on the Prince Edward Island property transfer tax rate, first time buyers can avail the exemption that waives the 1% of real property transfer tax allowed to first time buyers. It will cover the full tax amount up to a maximum home purchase price of $200,000. If the home is purchased for more than $200,000, no rebate will be given to the buyer and he is liable to pay the full tax amount due on property. And if your home is purchased for $30,000 or less, no property transfer tax is due at all.

In order to apply for your property transfer tax exemption, one must download and submit the First Time Home Buyers Declaration form. For more information, visit the Real Property Transfer Tax First-Time Home Buyers Exemption website.